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90_HB3408
215 ILCS 155/13.5 new
Amends the Title Insurance Act. Requires title insurance
companies and agents to disclose to the Department of
Financial Institutions certain fees charged. Prohibits
deviation from the filed fees except in certain
circumstances. Provides civil penalties for noncompliance.
Effective immediately.
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LRB9010893EGfg
1 AN ACT to amend the Title Insurance Act by adding Section
2 13.5.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Title Insurance Act is amended by adding
6 Section 13.5 as follows:
7 (215 ILCS 155/13.5 new)
8 Sec. 13.5. Fees; disclosure to the Department.
9 (a) A title insurance company or title insurance agent
10 must file with the Department a disclosure of the fees
11 charged for each service or product provided by the company.
12 This disclosure of fees must be filed by all title insurance
13 companies and title insurance agents within 90 days of the
14 effective date of this Section or 90 days following licensure
15 or registration under this Act, whichever occurs later.
16 (b) A title insurance company or title insurance agent
17 may not charge or collect a fee in an amount different than
18 the amount of the fee filed with the Department.
19 (c) If a title insurance company or title insurance
20 agent desires to change the amount of a fee or impose an
21 additional fee, the company or agent must file with the
22 Department a disclosure of the changed or added fee. A title
23 insurance company or title insurance agent may not charge or
24 collect a changed or added fee until the disclosure of that
25 fee has been on file with the Department for 60 days.
26 (d) A title insurance company or title insurance agent
27 may petition the Department for an order authorizing a
28 specific deviation from the filed fees. A title insurance
29 company or title insurance agent shall not be granted more
30 than 2 deviations in a calendar year.
31 (e) All charges incident to the business of guaranteeing
-2- LRB9010893EGfg
1 or insuring titles to real estate must be included in the
2 filed fee disclosure, including but not limited to charges
3 relating to title search and title examination, closing,
4 policy issuance, endorsement issuance, construction escrow
5 administration, title indemnity administration, and tract
6 search issuance.
7 (f) This Section does not apply to commercial
8 transactions or new construction. "Commercial transactions"
9 means all real estate transactions other than those involving
10 real estate improved with a single family residence or with a
11 building having 4 or fewer residential units.
12 (g) In addition to any penalty imposed under Section 23,
13 a title insurance company or title insurance agent that
14 violates subsection (b) of this Section shall pay to the
15 Department a civil penalty in an amount equal to 5 times the
16 amount of the deviation from the filed fee. The penalty
17 shall be paid to the Department within 30 days of the finding
18 by the Department that a violation of subsection (b) has
19 occurred. This penalty shall be paid on a per-occurrence
20 basis.
21 Section 99. Effective date. This Act takes effect upon
22 becoming law.